The Daily Tabloids blog reports that the London office of New York’s Cravath Swaine & Moore has slashed its cost of living allowance (COLA). In 2007, Cravath associates abroad were making over $300,000.
Cravath Swaine & Moore cuts its COLA in the London office from $110,000 to $60,000 as of January 1, 2009. [A]ll the associates, one after one, were called into the office of a partner, Philip Boeckman, to receive the news. The reason mentioned for the cut is the evolution of the dollar-pound exchange rate.
One associate complained… that this comes on top of bonuses being halved and the ski weekend being cancelled, and says that these measures “pretty badly affect associate morale”. OK, no one likes to get less wedge – but low morale because of only getting £40k to live in London, when everyone else is being made redundant? Bring out the violins.
The other side of the pond just got a lot less attractive.
The second oldest firm in the US, Cravath was founded in 1819 and ranks first among the world’s most prestigious law firms according to a Vault survey.